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Vodacom Tanzania acquires Smile Communications in $27m deal

By , ITWeb
Tanzania , 17 Apr 2024
Shameel Joosub, Vodacom Group CEO.
Shameel Joosub, Vodacom Group CEO.

Tanzania's largest telecom operator, Vodacom, has acquired Smile Communication Tanzania for $27 million (TZS 68.8 billion).

According to Tanzania Business Insight, the agreement provides Vodacom Tanzania with access to important spectrum held by the small operator, which will help it grow 4G and 5G network services.

The article adds that the transaction is a strategic move by Vodacom to reinforce its network infrastructure and expand data coverage.

Vodacom says the purchase was concluded on 3 April 2024, after receiving all essential regulatory clearances.

Tanzania Business Insight also reports that the transaction has been approved by the Fair Competition Commission (FCC), the Tanzania Communications Regulatory Authority (TCRA), and the Capital Markets and Securities Authority (CMSA).

The agreement gives Vodacom access to Smile's premium 800MHz and mid-band spectrum. Vodacom will also use Smile's 4G LTE countrywide mobile broadband network.

Smile's spectrum will be added to the frequencies that Vodacom acquired in Tanzania for $63.2 million, in October 2022, to access to the 700MHz, 2.3GHz, and 2.6GHz bands.

Vodacom Tanzania's spectrum holdings include 900MHz, 1800MHz, 2100MHz, and 3500MHz and has 19.1 million mobile users in Q4 2023, representing a 30% market share.

Vodacom Tanzania is 75% owned by South Africa's Vodacom Group Limited, with the remaining 25% stake floated at the Dar es Salaam Stock Exchange.

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